H1 FY21 Finance and Cost Analysis

(b)(c) H1 FY20 cost base H1 FY20 third party product cost¹4 350 3,133 (b) H1 FY20 adjusted cost base 2,783 70 70 (21) Caustic soda COSTS ANALYSIS III SOUTH32 We reduced our cost base by 9% (a) with cost efficiencies and weaker FX more than offsetting an increase in power costs (US$M) Price-linked costs 12 51 HoH impact H1 FY21 expenditure Foreign exchange on costs Price-linked costs Uncontrollable (US$46M) Royalties 15% 11% (19) (19) (11) (6) 9% Higher smelter power costs materials Smelter raw Power and diesel Bauxite Other13 17% 13% 25 10 59 194 3 2,546 Inflation Notes: a. b. C. Cost base excluding third party product costs. Consistent with the H1 FY21 and FY20 treatment, H1 FY20 includes a reclass of US$27M for rail related costs which have previously been presented on a gross basis in Other income and Expenses. Cost base includes EAI and excludes Other income. H1 FY21 includes US$385M of statutory adjustments and a US$86M adjustment for Other income and inter-segment manganese sales to reconcile to Revenue minus Underlying EBITDA (H1 FY20 includes US$451M of statutory adjustments and a US$144M adjustment for Other income and inter-segment manganese sales to reconcile to Revenue minus Underlying EBITDA). Controllable costs Other 15 H1 FY21 adjusted cost base H1 FY21 third party product cost¹4 SLIDE 16 35% 235 2,781 (၁) H1 FY21 cost base

View entire presentation